Carphone Warehouse sees strong Q3

Communications specialist The Carphone Warehouse has increased its full-year guidance after a
strong quarter, with good performances from its TalkTalk Internet business and its Best Buy Europe
joint venture, CEO Charles Dunstone said today in a third quarter trading update.

Over the three months to the end of December TalkTalk pressed ahead with the integration of the
Tiscali
business, making total sales of £446m, up 29% year-on-year.

The unit’s total broadband base was up 52% on the end of2009, and according to Dunstone
attracted 36,000 net new broadband customers during the quarter, partly due to its successful
‘bright-dancing’ campaign on UK television.

The much talked about Best Buy Europe venture also remained on track, with sales up 3.7% on a
constant currency basis. In the 13 weeks to 2January 2010 it made revenues of £996m, down 1%
year-on-year.

The first of its big box stores remain on course for a spring opening.

The de-merger of the Carphone Warehouse’s Internet and retail arms, initially announced last
April, is now on track to be completed in March;the firm said today that final documentation
will be sent to shareholders by the end of the month.

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